Gold Technical Analysis: In a bullish consolidation phase

Gold is trapped in a narrow range of $1,220 to $1,230, as the bulls are likely having a breather, having pushed the metal to a 2.5-month high of $1,233 last week. Also, the consolidation is happening in the positive zone above the six-month-long falling trendline. It is worth noting that the trendline hurdle was breached last week. A break above $1,230 (upper edge of the range) would signal a revival of the rally from the Oct. 8 low of $1,183 and could yield a rally to $1,248 (200-day exponential moving average). On the downside, a daily close below the 10-day EMA would weaken the bullish case.

Hourly Chart

Current Price: $1,223

Daily High: $1,225

Daily Low: $1,221

Trend: Bullish

Resistance

R1: $1,230 (range resistance)

R2: $1,235.24 (July 26 high)

R3: $1,248 (200-day EMA)

Support

S1: $1,220 (range support)

S2: $1,214.30 (Aug. 28 low)

S3: $1,200 (psychological support)

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